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Nestle SA NESN

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Morningstar’s Analysis

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Nestle Reports Impressive Q1 and a Solid Beat; Guidance for the Year Looks Conservative

Analyst Note

| Ioannis Pontikis, CFA |

Nestle reported a first-quarter sales update that included strong organic growth of 7.7% (real internal growth of 6.4%, pricing of 1.2%) significantly ahead of company-compiled consensus estimates of 3.3%. Growth continued to be supported by the retail channel (at an elevated level--up high single digits in the first quarter versus 6.8% and 8.6% in the fourth and third quarter of last year, respectively) due to robust demand for at-home consumption, with the out-of-home channels remaining negative but improving, and e-commerce sales growing 39.6% (now 14.5% of total group sales).

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Company Profile

Business Description

With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating more than CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle also owns just over 23% of French cosmetics firm L'Oreal. The company has a vast portfolio of global products, with 34 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 189 countries.

Contact
Avenue Nestle 55
Vevey, CH-1800, Switzerland
T +41 219242111
Sector Consumer Defensive
Industry Packaged Foods
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 273,000

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